Then, have a read of "CORPORATE BOND MARKET STRUCTURE: THE TIME FOR REFORM IS NOW" from BlackRock.
- More “all to all” trading venues – not just “dealer-to-customer” or “dealer-to-dealer”
- Adoption of multiple electronic trading (e-trading) protocols – not just request for quote (RFQ) or central limit order book (CLOB)
- Standardization of selected features of newly-issued corporate bonds
- Behavioral changes by market participants recognizing the fundamentally changed landscape
A few stages of development for this new paradigm could be:
- Sell-sides commence to use the spider model to search for liquidity
- Tech savvy buy-sides and hedge funds use the spider model and FIIDL to scour multiple sell-sides for liquidity
- This technology breaks out to the sophisticated private investor and then to universal adoption. "
All well and good. So what's the conclusion?
I suggest that the piece from BlackRock is valid and has obvious merit. I further suggest that one of the multiple protocols should be FIIDL and the Mesh Exchange.